Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing.
On April 13, 2023, The Alkaline Water Company Inc. (the "Company") received a
deficiency letter from the Listing Qualifications Department (the "Staff") of
The Nasdaq Stock Market LLC ("Nasdaq"), notifying the Company that for the last
30 consecutive business days, the Company's minimum Market Value of Listed
Securities ("MVLS") was below the minimum of US$35 million required for
continued listing on the Nasdaq Capital Market pursuant to Nasdaq Listing Rule
5550(b)(2) (the "Market Value Standard"). The Staff also noted that the Company
does not meet the requirements under Nasdaq Listing Rules 5550(b)(1) Equity
Standard and 5550(b)(3) and Net Income Standard.
In accordance with Nasdaq Listing Rule 5810(c)(3)(C), the Company has been given
180 calendar days, or until October 10, 2023, to regain compliance with the
Market Value Standard. To regain compliance with the Market Value Standard, the
MVLS for the Company's common stock must be at least US$35 million for a minimum
of 10 consecutive business days at any time during this 180-day period. If the
Company regains compliance with the Market Value Standard, the Staff will
provide the Company with written confirmation and will close the matter.
If the Company does not regain compliance with the Market Value Standard by
October 10, 2023, Nasdaq will provide notice that the Company's securities are
subject to delisting from the Nasdaq Capital Market. At that time, the Company
may appeal the Staff's delisting determination to a Hearings Panel (the
"Panel"). There can be no assurance that, if the Company does appeal a delisting
determination by the Staff to the Panel, such appeal would be successful.
The Company intends to monitor the MLVS between now and October 10, 2023, and
may, if appropriate, evaluate available options to resolve the deficiency under
the Market Value Standard and regain compliance with the Market Value Standard.
The Company may also try to comply with another Nasdaq listing criteria, such as
the ones under Nasdaq Listing Rule 5550(b)(1) Equity Standard. However, there
can be no assurance that the Company will be able to regain or maintain
compliance with Nasdaq listing criteria.
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